commented about how this does not address ramp medallions. what is the plan addressing those folks? how quickly will that be on the calendar? >> under the pilot program if they were qualified to transfer the medallion, and they had a ramp medallion, we don't want us to be bought and sold; those are important to ensure accessible transportation. would allow that person to exchange it for an available sedan medallion, and give the ramp medallion the somebody else on the list and that person could transfer the sedan medallion in its place. that seems to be a reasonable approach for ramp medallion holders; we have to talk to the industry

about this and make a policy decision. i'm not sure whether or not that will require further legislation. i have to talk the city attorney's office about that. i'm glad that you asked the question. begins with the opportunity to announce that we will have a town hall meeting on the subject on monday the 26th, will discuss this with industry and come up with a proposal is in as we can. one thing we do we do recognize is the uncertainty, is not something we want to maintain. >> chairman nolan: i would ask question. several people raised the safety issue and the lack of inspectors. can you comment on that? >> we have 4 taxi investigators, no substantial field presence. we are in the process of hiring for

additional positions, and we will have teams of investigators in the field most of the time. we can cover most of the days in the week, and most of the hours of the day with teams of 2 investigators. >> chairman nolan: the drivers fund, what is going on with that? >> the drivers fund continues to accumulate funding; it has over 3 million dollars. there is no determination as to what to do with it. however i recently came back - and one of the suggest some might advances that, i came from the international association of transportation regulars conference last week and i heard the city of new york is planning on issuing a request a proposal for drivers healthcare. in order to increase the level of coverage. i want to talk to new york city and other jurisdictions about leveraging multiple cities

populations of taxi drivers to bring rates down and provide health care for san francisco taxi drivers. >> chairman nolan: what is the rate at which the fund is growing? >> we started a pilot program, approximately 1 million dollars a year. we started the pilot program in late 2010. i cannot say with any accuracy what would happen when old medallions become transferable. that is what is happening now. >> chairman nolan: i am interested in that. that would be a wonderful thing to be able to do that. mr. -- point about being at a level, middle level, i would be interested in seeing that. >> a lot of the cabdrivers have

talked about sort of the other challenges that they face in their industry, corruption may be within the cap companies, maybe with non-driving drivers holding the down is required to drive, competition, challenges around technology that may be they don't have the access. do you feel that these things we can address with more resources in our agency, our department to clean up this. one of the drivers mentioned there is no future. i don't agree with that. we are missing a lot of riders out there; we can bring the taxi industry up to the level where everyone in the city can get a cab, and we can create a

lot more passengers. i want to get a sense if you feel that with more resources available we'll able to address this issues going forward. >> with the resources we have had we have made great progress in those goals. for example on the issue of the driver experience of the taxi company. we are putting together a color scheme ranking system that will give us the ability to differentiate and hold accountable these different companies based on their performance, both with respect to the public and with respect to taxi drivers. an important part of that is that we hope to send out a survey the taxi drivers and asked them about their experience with the company. they are not able to say that in public. yeah not able to testify at a hearing. you were given the opportunity to tell us i feel good about my company or i don't feel good about my company of these are the practices of my company that i wanted to know about we can take the survey results and

turn them into a score criteria for the companies themselves and getting the companies incentives to treat the cabdrivers better. or suffer the consequences. it is important. i have to say, there are a lot of people here talking about the pain of this transition. the pain is real. the hard work is real. the professional skills a real. the importance to the city is very real. i don't want anybody to think that it is not. these people are very important to us and we should respect that. with respect to -- and side car, that is an enforcement issue. we are working closely with the city attorney's office to identify our alternatives there, again with the addition hires we will have an effective field presence. if anybody heard the forum on kqed, those services are

illegal, unsafe, unacceptable, and we must do something about it. (applause) >> director bridges. >> director bridges: i want to go back to a couple of things, the financing piece. i concur with the comments that the drivers are important to us in the city of san francisco, and this agency as well. we appreciate your services. i want to go back to the financing issue. you mentioned earlier that there would be a discount for the first 150 applicants and no down payment required. i have been listening for the past few months, most of the drivers on the list have served, and had been on the list 25-30 years, most

60-65 plus. is there any such ability for them in terms of how the financing will be structure for them to take advantage of this? >> it is quite easily available i believe. i'm not aware that any driver even under the pilot program under full price has been decline the loan. generally speaking, again the credit union could speak more directly to this, most cabdrivers have qualified for this. that will be particularly true when the asset is funded; there is a 300,000 value for 150,000 price. >> director bridges: and then my second question is, reading through the documents, i do not see anything here about the revenue sitting at the

financials additions. can you address what will happen to the interest income? >> i will have to defer to the credit union or get back to you with that specific answer. i neglected to follow up on the last answer which is that staff's recommendation is based on 150,000 to 150 all about applicants. staff would have no objection if that number of people could be increased. we recognize this people have serve the city for many years and they have certain expectations. we as staff want to do as much is possible for them. >> director bridges: -- >> we will be collateralizing the down payment assistance

with transfer proceeds from mta funds that otherwise would be in the standard bank account. the level of funding that the credit union will retain will be just the amount of collateral. it will be remitting funds back to the sfmta. the interest will come back to us. otherwise we would be earning interest through the regular city treasury. >> director bridges: you know the rate structure? >> the credit union is here. they can answer. >> director bridges: that is my question. i appreciate that.

>> chairman nolan: will the credit union come forward. >> good afternoon. >> i am rebecca -- with the san francisco federal credit union. >> director bridges: my question was -- the money transferred back to the mta funds. the fun sitting in the credit union, what type of rate structure? >> it will be against their five year cnt, with 75-100 basis points in addition to the rate. we wanted a good market right. >> director bridges: a good market right, that's correct. thank very much. >> chairman nolan: --

>> can i get clarification on this balloon payment due in five years? >> the example we gave to chris, one choice, a borrower could have, the five-year loan. we want to keep the payment as low as possible. we want to make the term as long as possible. a five-year 30 is fixed for 5 years; at the end the balance is refinanced until paid in full. it could take that to the full 30 years. there is no prepayment penalty. they can make higher payments anytime and pay the loan down, which is what we have seen over the pilot program. it is a way to bring the loan program for the borrower to keep the payment as low as possible to fit their particular budget. we have programs that range from a three-year fixed program, a lot of people take a 10 year, 12 year program.

it's really what the person is most comfortable with that fits within the particular financial circumstances. we try to make as many programs available. we created the 5/30, when the medallion price went up, to keep the loan payment as low as possible to the person borrowing. >> chairman nolan: -- >> i want to clarify a few things and speak to something that carl -- said. important that the drivers that we do value, some people are suspicious when i say that, but i think it you will realize that when you understand this program better. these are questions for director hyoshi and director reisking. first of all, an important point, 150 qualified applicants. if it stays at 150, how deeply

get on the list with folks getting this benefit? >> for 3 applications, 2 will qualify. my math -- >> it sort of a 2-3 ratio. so with 150, we'll get to 225 on the list. let's talk in tangible terms. there are people who have put their lives in its industry. it is important that we have clarity in tangible terms. the current proposal would generate this benefit to the 225 waiting spot on the list. number two, i want to speak to a comment specifically from bill -- someone but i've known for a long time.

i suspect he's not through with my ideas, but i hope he knows that i respect him. he said you cannot get a loan, because if they borrow 150,000 that would not get that loan but we are in a different situation. they are getting this loan free. if someone got the loan, the credit union will give it to them for no down payment. there is no reason to believe that any of these 225 people on the waiting liswould be unable to secure a loan for this medallion.

we have seen no one turned down for a long. >> correct. >> is important to clarify -- and i want to make sure everyone understands it, the debt service, loan payments, mortgage payments, whatever you want to call it, under this proposal is going to be roughly according to your proposal $800 a month. >> $800-$850, yes. >> the difference between what someone would get it we're stuck with the prop system, the difference between the month revenue stream to one of our long-term value drivers from this sort of the medallion, is about -- a month, because they have to pay the loan service. but the same time, unlike prop

k because people drove onto the drop because they don't have any ownership in the medallion, people in this medallion do own it. >> people think the pension is being taken away. i want to correct that perception. the system creates a way for the driver to transfer the medallion and realized the asset value. >> thank you for addressing that point. i feel a bit of kindred spirit with you today, suffering personal attacks. this is a program that was is explained like that shows that you as a staff showing respect the people will have a long time in industry. while it is tempting at some levels of the mta to reach out and take all this money we have

sacrificed determine some of the revenue to create a transition program. and i appreciate your comments. those are my questions. >> chairman nolan: director rubke. >> chairman nolan: i would like to make an amendment, item 11. >> director rubke: i would like to to make in a amendment to item 11. >> chairman nolan: second of the motion? >> if director rubke's amendment is passed, we'll get to 300 on the waiting list.

>> correct. >> chairman nolan: all those in favor? passed, 11 as amended. i would like very much to see that the revenue generated, in fact is back to this industry in a direct, definable way, such as inspectors. that is an important issue. safety is an important issue. i don't know that four more will do it. i would like to see the drivers fund get substantial increase especially like funds like ms. hyoshi was talking about. >> do we have a motion and a second? >> we do. >> on 11 as amended and on 12.

>> chairman nolan: all those in favor? it is so ordered. we will take about a 10 minute break. (break)